Arizona debt: six years, and Proposition 209's 10% wage cap
Arizona gives creditors six years to sue on most consumer debts, and its law names credit cards specifically. In 2022 voters passed Proposition 209, which cut wage garnishment to 10% of pay, capped medical debt interest at 3% and protected much more of your home.
The check is free. If a dispute letter will help, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Arizona at a glance
- Written contracts, credit cards
- 6 years (A.R.S. 12-548)
- Wage garnishment
- 10% of disposable pay (5% hardship)
- Medical debt interest
- Capped at 3%
- Homestead exemption
- $400,000, adjusted for inflation
- Proposition 209 passed
- November 2022, about 72%
- New limits apply to
- Judgments after Dec. 5, 2022
General information about Arizona law, with sources below. Not legal advice.
Six years, including credit cards
Six years for written contracts, credit cards and medical debt (A.R.S. 12-548). A 2011 law (HB 2412) amended section 12-548 to make the time limit for credit card debt six years.
Federal law bars suits and threats of suits on debt past the limit. A payment on an old account can restart the clock, so check your dates first.
Proposition 209: what changed
Proposition 209, the Predatory Debt Collection Protection Act, was approved by about 72% of voters in November 2022 and took effect on December 5, 2022.
Since Proposition 209, a garnishment can take no more than the lesser of 10% of disposable earnings or the amount above 60 times the minimum wage, down from 25%; a court can lower it to 5% for extreme economic hardship. Interest on medical debt is capped at 3% a year, down from 10%. The homestead exemption for a primary home rose from $250,000 to $400,000, and exemption amounts are adjusted for inflation each year from 2024.
The new limits apply to judgments entered after December 5, 2022; older judgments stay under the old rules. If you were sued before then, ask whether your judgment falls under the old or new rules.
To see how Arizona compares with other states, and the ways to stop or reduce a garnishment, read our guide to wage garnishment.
Whether a payment would restart the 6-year limit is covered, state by state, in our page on time-barred debt.
Limits vary a lot between states: by comparison, Florida sets 4 years and Massachusetts sets 6 years for similar debts.
For medical bills in Arizona, see what happens if you do not pay medical bills and whether medical bills affect your credit score.
Medical bills are also unusually negotiable: our guide on how to negotiate medical bills covers itemized bills, errors and charity care, and what happens if a medical bill goes unpaid sets out the stakes.
Most debt lawsuits end in default because people do not respond; our page on what to do if a debt collector sues you explains how to avoid that in Arizona.
If a collector writes to you in Arizona
A written dispute inside the validation period makes the collector stop until it mails verification. For a medical bill, also check the interest rate against the 3% cap.
Our guide on how to dispute a debt with a collector applies in Arizona, with a free sample letter.
Arizona residents often hear from national agencies like Cavalry SPV and ConServe; see our guides to each.
Questions people ask about debt in Arizona
What is the statute of limitations on credit card debt in Arizona?
Six years under A.R.S. 12-548, which a 2011 law amended to cover credit card debt specifically.
How much of my wages can be garnished in Arizona?
Since Proposition 209, no more than the lesser of 10% of disposable earnings or the amount above 60 times the minimum wage. A court can reduce it to 5% for extreme hardship.
What interest can be charged on medical debt in Arizona?
No more than 3% a year since Proposition 209, down from 10%.
Does Proposition 209 apply to my old judgment?
The new limits apply to judgments entered after December 5, 2022. Earlier judgments stay under the old rules.
How much of my home is protected in Arizona?
Proposition 209 raised the homestead exemption to $400,000, with yearly inflation adjustments from 2024.